Action Required Now, Don't Wait

It is obvious the conflict in the Persian Gulf is not going to end anytime soon. Even if it does end today, oil flows will be down for the next year or two. That's because oil shore facilities have been damaged and will take time to repair, thus, the volume of oil that can be loaded will be well down. Additionally, oil storage facilities are nearing capacity and when these are maxed out, oil wells will start shutting down. Starting things up again is always a problem, often taking months, even years.

Both Australia and New Zealand need to take action now. Start building capacity of its own. Australia can build more refineries, and NZ should begin its stalled lignite to diesel project in Southland. Additionally, both should be looking to contract alternative supplies. Australia could try buying output from Uganda through the Tanzanian port of Tanga. This oil will become available later this year. New Zealand should see if it can buy finished fuels from the new giant Dangote refinery in Nigeria. Whatever options are available, both countries should be working at fever pitch, night and day to solve the problem.

What's particularly weird is that NZ still exports its high grade, light and sweet crude, while its own diesel tanks are about to run out. NZ has no plans underway to distill this easily processed crude into diesel. The NZ government is that stupid.

Both Australia and New Zealand are like possums caught in the headlights, they appear bereft of ideas.

https://www.worldoil.com/news/2026/3/4/producers-face-storage-crunch-as-hormuz-shutdown-traps-middle-east-crude/#:~:text=In%20theory,%20the%20Arab%20producers,be%20extended%20by%20a%20week.

“If oil producers reach ‘tank tops’ for lack of export outlets, then they have to curtail output,” Antoine Halff, co-founder and chief analyst of geospatial analytics company Kayrros, said in a post on LinkedIn.

Dangote Too Cheap

The World Bank is putting pressure on Nigeria to get Dangote to lift its prices, they're selling refined oil too cheap. You cannot make this up!

Iran Opens Strait, For Now

Good news, Iran has opened the Strait of Hormuz so long as the ceasefire in Lebanon holds. Ships must still go through their tollgate though, which limits the speed with which ships can exit the Gulf. I checked on Marine Traffic's website and there isn't a flood of vessels underway, but expect this number to increase significantly. 

Now, Australia and NZ governments, don't sit back and claim credit for everything while doing precisely nothing. Now is the window of opportunity to come up with distillation solutions for your own oil. How long do you need just sitting around on your hands, you clowns!

Here's what to do: https://kenhorlor.blogspot.com/2026/03/new-zealand-fuel-crisis-action-required.html

Oil - Lots of It

What does a barrel of oil contain, what products are derived from it, and what are the different types of crude oil?

1. Types of Crude

2. Refining Process - Like Making Moonshine

 

3. Refining Output - Various Products

Fuel Prices Set to Spike

The utter stupidity of the New Zealand government is now on full display as the price of fuel is set to rise following the outbreak of war in the Middle East.

New Zealand has its own oil, but no ability to refine it. That's because the NZ government allowed its one refinery to close down. 

Get working now you cockwomble NZ government. Get that refinery up and running again, pronto.

California Faces Fuel Crisis

Hard to believe I know, but oil rich California has been so badly managed, the lower supply of oil has resulted in expensive fuel prices at the pump. Who'd a thunk? The state is now reliant on non-US supply despite sitting on the resources to drive the whole state.

This is a lot like New Zealand. It now lacks a refinery and is wholly reliant on overseas fuel supplies, despite sitting on a mountain of crude.

Is this a conspiracy to collapse the economies of both territories, or just stupidity on the part of governments?

Australia Critical Fuel Shortage

I said this would happen and here we are; Australia is running out of fuel and only has 24 days of diesel in the tanks. Australia's refinery capacity has atrophied over time and right now, it has only two operational refineries.

New Zealand will be similar as it lacks a refinery altogether and must import all of its finished fuels.

New Zealand's Fuel Security

New Zealanders reading this should urgently contact their MP's asking what the government is doing to ensure the country has fuel - petrol, diesel and jet fuel - if the Straits of Hormuz are closed.

Currently, NZ obtains all of its fuel from Southeast Asia; the region has big oil refineries there. NZ has no, literally no refinery and so cannot process its own oil.

Here's the situation: if the Straits of Hormuz are shut, China will lose a major supplier of its oil, Iran. It will still be able to get some supply over land, but that would be a trickle. So, what will China do? They'll turn to Southeast Asia and insist they make up the difference; and Southeast Asia will comply as China is their biggest trade partner by far.

That will leave NZ completely abandoned, nothing left for it at all.

People need to start screaming, this situation has become dire.

Security of Energy Supplies

 I notice the large oil refinery at Altona in Australia is due to close. 

https://www.theguardian.com/australia-news/2021/feb/10/coalition-urged-to-confront-australias-severe-fuel-insecurity-as-altona-oil-refinery-closes

New Zealand's one oil refinery at Whangarei in Northland is also to become a fuel terminal only. But for Australia, given it is a large developed economy, not being able to refine its own crude leaves it vulnerable in times of war. Key infrastructure must be protected. There really is no alternative for this; having to import all fuel supplies already refined means the country can be defeated by simply shutting off that supply. Wake up Australia and New Zealand.